Accounting Philosophically: "Food for Thought"

A friend of mine, who is a lifelong Professor of Accounting and Finance, and lives a comfortable, but hardly extravagant lifestyle, recently, shared a joking observation on our current economic situation with me. It was, "I didn't realize how bad things had gotten until Fortune magazine called me to let me know that I was #27 on the Fortune 500 list." Obviously, this was not so, but his point was made - and if you haven't heard it enough already, TIMES ARE TOUGH!

Hopefully, the old economic concept of demand and supply will soon come into play. Simply put, if we can't demand - and the suppliers want to supply - something will have to give. Ideally, it will be prices - and they will come down. But, I'm willing to bet that you, like me, are wondering exactly what the stimulus will stimulate. After all, if money is provided to buy things, then prices will not need to come down - and we may wind up buying at the same price, but with our own tax dollars.

So, let's see here. It looks like we're paying taxes so we can get a stimulus check from those taxes - to pay the same price we were paying before - that helped create the need for the stimulus in the first place.... Confusing, isn't it? Let me know what your thoughts: Email me at william.vasquez@taxtalkonline.com

Accounting Philosophically is strictly a tongue-in-cheek observation and is not intended to reflect any political affiliation, lobbying cause, or other similar position.